Business Wars Netflix vs Blockbuster Revisited - The Digital Divide | 4
May 8, 2019
Reed Hastings, co-founder and former CEO of Netflix, shares insights on transforming the company into a streaming powerhouse during challenging times. He discusses the power of algorithms over content in understanding viewer habits. Hastings reflects on Netflix’s rise amid skepticism from traditional media and the pivotal moments that capitalized on the cord-cutting trend. He candidly addresses controversies, including the backlash from separating DVD and streaming services and the lessons learned from public missteps.
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Watch Instantly Demo
- In 2007, Reed Hastings showcased Netflix's new streaming app, "Watch Instantly," to journalists.
- Despite the impressive demo, journalists questioned its viability against cable on-demand and the limited content library.
Need for Mainstream Content
- Netflix needed mainstream content for its streaming service to succeed.
- Securing deals with studios was crucial, but studios were hesitant about streaming's potential.
Time Warner Rejection
- Hastings and Sarandos met with Time Warner CEO, Jeff Bewkes, to secure streaming rights.
- Bewkes refused to license HBO's premium content, highlighting its value and Netflix's potential threat.
